Bulgarian National Bank Governor Dimitar Radev emphasized in a recent BNT documentary that the delay in Bulgaria’s entry into the Eurozone was primarily a political issue. According to journalist Nadia Obretenova, who interviewed Radev for the documentary “The Way of Money”, the governor highlighted the central bank’s policies aimed at monitoring bank lending, which were announced just a month ago and were intended to ensure moderate lending practices.
Obretenova underscored the crucial role of political stability in Bulgaria’s path towards Eurozone accession, stressing the need for unified direction and goals across successive governments. Radev echoed these sentiments, asserting that joining the Eurozone would significantly benefit Bulgaria. He emphasized that while membership entailed commitments, the benefits far outweighed the costs.
Drawing a comparison, Radev pointed out that Croatia’s entry into the Eurozone resulted in an immediate two-notch credit rating increase, translating into substantial financial advantages. Prior to Croatia’s accession, Bulgaria held a superior credit rating, which had since declined.
Reflecting on recent history, Radev noted that Bulgaria and Croatia had been on similar trajectories until 2020, when Croatia’s Eurozone entry coincided with political turmoil in Bulgaria. According to Radev, Bulgaria lacks the requisite political framework to advance the Eurozone accession process, highlighting that it’s not merely a technical matter but a political one.
The governor emphasized the importance of a clear national direction and identity, aspects he believed were often overlooked in discussions about Eurozone accession. Radev cautioned that without a cohesive political solution, any practical changes resulting from Eurozone membership might not be as transformative as anticipated, potentially going unnoticed by the general population. (Novinite)